Tag: invoicing system

With the advent of the Internet, the billing system has evolved significantly. Under the new e-invoicing software, all business-to-business invoices are electronically authenticated by GSTN for further use on the common GST portal. The invoicing billing software issues an identification number against every bill by the IRP, short for Invoice Registration Portal. As e-invoicing software usage has grown, the accounting field has also incorporated it. 

The E-invoicing software requires you to submit an invoice on the GST portal to generate multiple reports with a one-time upload. Accounting software uses this portal to benefit taxpayers and let them perform their e-invoicing activities. Along with this, this online accounting software allows users to migrate all their data safely with the support of the new e-invoicing software. 

Note: Signs your Business need a Billing & Invoicing Software

Features of a Good Online Accounting Software

1. The GST invoicing software helps you keep track of all entries of a particular invoice. 
2. The e-invoicing accounting software lets the user directly integrate with the GST portal. 
3. E-invoicing software is easily accessible through different operating systems, such as web browsers and mobile phones. 
4. It is very cost-effective. 
5. It can reduce the risk of fraud and promote trust & reliability. 

The Current Invoicing System

At present, businesses generate their invoices through different tools and upload the final invoice manually for the GSTR-1 return instead of using single accounting software. After uploading the invoice, the user can see the information in GSTR-2A. On the other hand, transporters have to generate separate e-way bills. However, for businesses, the procedure is a little less cumbersome. They can use the accounting software with tools for GST integration and e-invoicing. 

For businesses, the e-invoicing system allows the user to import the invoice through excel or API integration. The entered data effortlessly flows through the entire GST portal. 

Also Read : Introducing One Stop Accounting Software for Small Business

Benefit of e-invoicing to Businesses

The major role of e-invoicing is to benefit the business and automate the process with the help of accounting software. A few of the advantages of using e-invoicing through GSTN are below.

• E-invoicing helps fill a significant gap for GST in data reconciliation, leading to a major reduction in mismatch errors. 
• There is a reduction in data entry errors as the e-invoices generated by multiple software can be read by this accounting software, offering integration with the GST portal.
• This GST accounting software allows all the authorities to track the invoices the supplier has prepared. 
• Another benefit of e-invoicing is that it lets you generate tax credit reports. 
• This software disables the possibility of surveys and audits by the tax authorities as all the information about your business is available at the transaction level. 
• Backward integration and automation of the process can make filing tax returns effortless. 
• It auto-populates the required details of the invoice in multiple returns. 

Read: Online Invoicing Software Can Make Your Life Easier

E-invoicing Curbs Tax Evasion

Another major benefit of e-invoicing accounting software is that it helps in proper tax compilation and curbs tax evasion in the following ways: 

• As the accounting software generates an e-invoice through the GST portal, the tax authorities get complete access to all the transactions happening in real-time. 
• Another benefit of generating invoices before a transaction is that there are fewer chances of manipulating the invoice now. 
• There cannot be any fake tax credit because invoices are integrated with GSTIN every time they are generated through the GST portal. 

Everything has two sides to the coin. If the e-invoicing accounting software has advantages, it also has some disadvantages that you shall not ignore. On one hand, it helps reduce tax evasion and fraud in B2C invoices. 

Because it only supports B2B invoices. Another disadvantage is that it does not store invoices for more than 24 hours. Therefore, study all about the new Invoicing Software for Small businesses or large one before adopting it. 

Running a business means wearing many hats together to run it smoothly and one of the most important and tedious ones is to manage finances. Initially, when you have few clients, it can be done in excel or spreadsheets but what about the time when your business starts gaining momentum. To be prepared, for such times or to be ever ready for tax submissions, or to have a better assessment of cash inflows and monitor the financial health of your business, you need a good secure billing & invoicing system.

Also, every business owner wants to be on the top, and for that businesses should update themselves with advanced digital solutions. In today’s competitive market, investing in modern and advanced technology in your business operations is one of the best ways to move ahead of other competitors.

Billing & Invoicing System / Software

The billing & invoicing software replaces the manual work and brings more efficiency to the business’ work. It helps in automatically creating or generating bills / professional invoices for the sold or supplied product and services. Further, invoices can be customized professionally with your company’s logo, name, contents, etc.  Also, in the invoicing software, the list of products and services with their related costs, including taxes can be saved. So, each generated invoice will show the actual total cost that the client needs to pay and from there itself the invoices can be delivered directly to the client, which saves your time and effort.

So, the invoicing applications help businesses keep track of bill payments, record finances, track cash inflow, process payments faster, etc. It also provides different online payment options to clients.

Signs your Business Need Billing & Invoicing System

Here are a few signs that your business should quit all the traditional methods of billing and invoicing and needs billing and invoicing software:-

1. Spending more time on invoicing than on your business

After being in operation for a few months, when your business picks up and you have a big client list, then spending time creating and managing invoices in Excel or spreadsheet will not be left to an hour but a few hours or say a day. So, a lot of your time will be spent on creating and sending invoices to your growing client base, instead of focusing on growing and improving your venture.  

To manage time, businesses need to opt a good billing and invoicing software, which can help you focus on the main business matters rather than spending most of your time on maintaining invoices and bills.

2. Growing accounts receivable

As the business grows, so does the accounts receivable, and so does the pressure on the business to collect those payments. Now imagine all your client’s data in excel or a spreadsheet, and you are trying to calculate and keep track of all the debtors. Isn’t that thought scary? It surely is. So, here comes for help a good billing and invoicing software. We suggest you opt for one stop invoicing software, which is cost-effective and it provides various several features.

3. Easier way to create and deliver payment reminders

With time, in businesses, the client’s list increases and so does the list of late payers. The reason for late payers can be either people are forgetful, have misplaced invoices, or have unintentionally deleted emailed invoices.

And, if you manually track these clients, their outstanding invoices, and send payment reminders to them, the whole process will be tedious. So, the best option is to send automatic payment reminders and this can be done best with the use of invoicing software. In this software, you do not have to lift a finger. You just need to schedule the time for a reminder and you are done. It is a great way to minimize late payers and get your hands on the money you had worked hard to make.

4. You don’t know the real-time status of invoices or revenue

Many businesses wait until the end of the day, week, or pay period to collect work order info and process invoices. As a business owner, you should have real-time reports of all this.

And if you ask your accountant to pull these reports that are just a few weeks behind just to get an estimate of current revenue, then they will take too much time to create and send those reports whereas invoicing system shows you the real-time status.

5. Looking for an easy way to track finances and create business reports

As business gain momentum, paperwork grows along with it and so does the work to track finances and create business reports. You might have to enter and reenter duplicate data across multiple software platforms to generate financial reports for your business.

Whereas if you have billing and invoicing software, it will make your work easier by tracking the invoices and creating the business records automatically.

6. Invoicing System can be integrated with other business tools

One thing that doesn’t cross people’s minds when they think about invoicing software is the ability to integrate invoicing with other business tools. What I’m talking about here is additional multitasking to enhance the performance of your business. One stop offers integration, which in turn paves the way to thousands of other business tool integrations.

7. You need to keep track of your inventory more efficiently

With small operations, it is easy to manually track inventory. But, as your purchase and sale increases, the manual system becomes inefficient. Instead, you should find a way to store and update inventory data in a real-time system.

Many accounting software comes with built-in inventory management features that let you record descriptions of each product in your store and automatically update your inventory every time you log a sale.

8. You need faster access to information

The main advantage of working on a cloud-based invoicing system is that you can automatically generate data. Instead of going through hundreds of spreadsheet rows to reach a conclusion, you can create powerful reports and dashboards with just a few clicks. For instance, if you want to know gross profit for all customers during a certain time, you can pull a customized report on just about every financial transaction your business had. Maybe you need to know what products sell the fastest during a particular month.

Also Read: How online invoicing software can make your life easier

These are a few points, which clearly depict that your business now needs a billing and invoicing system.